Sale Negotiated by Hahn, Sherman and Koskovich of Colliers International

Phoenix, AZ – Colliers international in Greater Phoenix negotiated the sale of San Simeon, an apartment community located at 6091 E. Golf Links Road in Tucson, Arizona. The 70-unit asset sold for $3.74 million or approximately $53,428 per unit.

Bill Hahn, Jeff Sherman and Trevor Koskovich, executive vice presidents with Colliers’ Phoenix office, represented the seller, Corey Peterson of Gilbert, Arizona.

The property was acquired by MCFT Holdings, LLC, a company formed by San Diego-based McMillin Homes, who was self-represented. MCFT Holdings acquired the asset as a long-term investment and plans to implement general property upgrades.

San Simeon was built in 1963, and underwent a large-scale renovation in 2013. The 70-unit asset consists of 57,865-square-feet in five two-story buildings on approximately 1.33 acres. The unit mix comprises 10 one-bedroom, 57 two-bedroom and 3 three-bedroom apartments, ranging from 615-square-feet to 985-square-feet. Occupancy at time of sale was 96 percent.

Common amenities include a swimming pool, playground and gated courtyards. Interior features include walk-in closets, stainless appliances, granite counters and washer-dryer hookups.

San Simeon is well-situated with several educational facilities nearby, including K-12, Pima Community College, Tucson College and the University of Arizona. It is also in proximity to major employment generators, including Davis-Monthan Air Force Base, U of A Medical Center, Tucson Medical Center, Target-anchored El Con Center and Dillard’s-anchored Park Place Mall. The surrounding area offers grocery stores, shopping centers, healthcare facilities and public parks.

[mepr-show rules=”58038″]Cap Rate: 7.03%[/mepr-show]

The last privately owned industrial parcel of land in Tucson CBD (Tucson’s central business district) sold recently to AMERCO Real Estate Company for $1.65 million ($9.75 PSF). The 3.88 acres at 450-460 N Freeway is zoned I-1 and located along the eastside of Interstate 10 on the northbound frontage road near St. Mary’s and I-10 intersection, adjacent to the Tucson Metropolitan Chamber of Commerce and Hotel Tucson City Center.

The buyer, Phoenix-based AMERCO, is the parent company of U-Haul and purchased the land for a new prototype mini-storage site.

The seller, First Family Company, Ltd. of Tucson (Joe Millstone, manager). Millstone told us the property had some challenges and had been on the market for 25 years. Challenges such as several land swaps with the City to square it off, and negotiating with both City and State for a direct I-10 frontage road access were needed for the site. With these completed, the property sold shovel-ready to the new owner to bring only site plan approval for construction.

The property also being in the Central Business District and Government Property Lease Excise Tax District— or GPLET — is entitled to this incentive program, created by the city in 2012, that waives property taxes for eight years if the developer increases the property’s value by at least 100 percent.

U Haul announced at the start of the year, it’s interest in booming college towns and traditional big-city markets. U-Haul is the authority on migration trends thanks to its expansive network that blankets all 50 states and 10 Canadian provinces. The geographical coverage from more than 20,000 U-Haul neighborhood dealers and U-Haul-owned and -operated stores offers a comprehensive overview of where people are moving like no one else in the industry.

While U-Haul migration trends don’t correlate directly to population or economic growth, the data is a strong gauge of how well states are attracting and keeping residents. With the recent residential growth, and projections that don’t seem to be slowing down anytime soon in downtown Tucson, a U Haul mini storage facility should fit in well.

Joe Millstone with MIDCO in Tucson negotiated the transaction for the sellers and AMERCO was self-represented.

For more information, Millstone can be reached at 520.906.8008.

To learn more, see RED Comp #3752.

Tucson, AZ  — Berkadia Real Estate Advisors of Tucson has completed the sale of Rillito Village Apartments at 3700 N 1^st Avenue, in Tucson, Arizona, for $12.8 million or $47,059 per unit.

Art and Clint Wadlund with Berkadia’s Tucson office, represented the seller in the transaction. The seller was Rillito Village, MMLP, LP, an affiliate of Montford Management, LP of Frisco, Texas.

The buyer was California-based SB Pacific Group of Berkley, California (Brandon Lo Porto, partner).

Built in 1984, Rillito Village is a 272-unit Class B asset, consisting of 140,672-square-feet in 35 buildings on 9.17 acres. The two-story community offers a mix of studios, 1-bedrooms and 2-bedroom/1 bath units. On-site amenities include swimming pool, fitness center, and laundry center.

The property had undergone many renovations and capital improvements within the year prior to sale interior and exterior of the buildings.

SB Pacific is a real estate investment and development company specializing in opportunistic investment and value-added infill development. Founded in 1986, the company was previously known as Pacific Bay Investment. The company focuses on investments at locations in California, Texas and Arizona. Properties include multifamily, office and retail products valued in the approximate range of $5-$50 million each.

For more information, Art Wadlund can be reached at 520.299.7200 and Clint Wadlund is at 520.529.9206.

To learn more, see RED Comp #3717.